How to be sure you can Repay Your Payday Loans

If you take out any loan then you need to be sure that you will be able to repay it. This sounds really obvious, but it isn’t something everyone checks. This can be especially true if we need money really quickly as we may be stressed and not really thinking about the future, just worrying about how we will get the money that we need. With a payday loan the money will arrive quickly and so it can be an obvious solution to getting money in a hurry. However, it does have to be repaid very quickly as well. So, you need to think about how you are going to manage to do this. Whether you have already taken out the loan or are considering one, you should be thinking hard about how you will repay it.

How Repayment Works

With a payday loan you will need to repay everything that you have borrowed and any charges and interest on the next day that you get paid. This means that you need to find a lump sum payment. The lender will set up an automatic payment so that you will not forget to make it. 

Tips on Repaying

It might seem easy to repay because it will be on the day that you get paid and therefore you will have lots of money available, but you will need to check this. For example, you will need to make sure that the money you are paid will be enough to cover the cost of the repayment so make sure that you know how much the repayment will be so that you can check this. The lender will be able to tell you this. Then you need to check all of the other payments that you have coming out at this time as well as you may find that you do not enough money to cover these too. Also think about other payments that you will need to make in the month. You will probably need to look back at old bank statements in order to be able to find out all of this information. Once you have done this you will know whether you will have enough money to manage or whether you will need more.

Even if you do not need more, it can be a good idea to have a think about what you can do to get a bit extra. This is important to help out if you need it and it will also provide a back up in case you have an unexpected bill and need to suddenly find some money to pay it. There are different things that you can try and it is a good idea to think of some things that you are confident that you will be able to do so that you can either try them or keep them in mind in case you do need them.

You will need to get the money fast which means that you will be more limited as to your options but there are still things you can do. To start with make sure that you only buy essentials and spend money on nothing else. Also compare prices on everything you are buying and make sure that you are not paying out more than necessary for things. It could also help if you could try to raise some money. You might be able to sell some things that you own and no longer need using social media pages or auction websites. It could be that these will sell quickly, particularly if you keep the prices low and that could help you. You might also be able to pick up some temp or freelance work which tends to be paid quite quickly so you could get the money in time to help. You may also be able to do some online work which could pay quickly as well.

Should I Borrow Money if I Have a Poor Credit Record?

It can be difficult knowing when might be a good time to borrow money with regards to your personal finances. If you have a poor credit record, then you might wonder whether you should borrow money or not. It is a good idea to always give borrowing a lot of thought as you never know when you might need money, but you need to make sure that it is the right time to borrow. So, what are the things that you should consider when borrowing if you have a poor credit record?

Finding a Loan – if you have a poor credit record, then it could be a lot more difficult for you to borrow money. This because lenders will look at your credit record to see whether they can trust you to repay the loan. If they feel that there is a risk that they will not get their money, then they will not want to lend to you. This means that borrowing may be hard as you may be turned down. Even if you can find a lender that will let you have some money, they will often up the interest rates to higher than their advertised rate if they do not like your credit record. This means that they can get more money from you to start with and then if you end up not repaying all of the loan, they will have had more form to cover their losses. There are loans which are set up for people with a poor credit record so you will not get turned down for those but you will need to be aware that your options will be more limited. You may not be able to borrow so much or for so long and they will be more expensive because the lenders take a higher risk compared with traditional lenders.

Repayments – it is really important to make sure that you will be able to repay the loan that you take out. This will be the case whether you have a good or poor credit record, but if you have a poor one it is likely that you have had or are in financial difficulties which means that you are even more likely to find things tricky. Make sure that you know exactly how much you will need to repay and when and check your household finances to make sure that you are completely confident that you will be able to repay it. Then you need to have a backup plan as well because you never know when you might have an emergency and need some extra money, so think about how you would cope then and have something worked out before you borrow money.

Credit Score – it is important to think about the impact that borrowing might have on your credit score. If you are already struggling then you need to be careful. If you apply for a loan and get turned down this will go on your credit record and it will put off other lenders. If you keep borrowing money in quick succession, this will also put off other lenders. If you use a short term loan, then some lenders will not like this either. So, bear this in mind and think about whether it might be too risky to borrow. Some lenders will let you know before you borrow, without doing a credit check, whether they will lend to you. It could be worth using one of these lenders as then there is no chance of having a declined loan appearing on your credit record. Do remember though that even if you are accepted for loan, it will not look good on your record if you miss any repayments.

How to easily Repay Personal Loans

If you have a personal loan, then it is really important to make sure that you repay it on time. It is therefore a good idea to have a plan so that you can do this and therefore you are far less likely to have to pay the fees that are charged if you miss a repayment. There are different things that you can do which will ensure that you will be able to make those payments.

Make Sure you Know What is Due and When

It is really important to make sure that you know exactly how much money you need to pay and when. Do not guess this amount, calculate it carefully so that you know for sure how much it will be. It may be best to ask the lender to confirm this for you. 

Check if you have Enough Money to Cover it

It is important to do this carefully. It can be easy to just assume that you will have enough money to afford what you need without checking. It is important to carefully check though as you want to be confident that you will be able to manage really well. Therefore, look at your household accounts or previous bank balances and see whether you would normally have enough money to manage. It can also be a good idea to think about whether there are any months that tend to be more expensive than others, perhaps because you pay for certain things once a year or you have birthdays etc to pay for. So, make sure that you check carefully and think about what money you will have available and whether it will be enough. Even if it is enough it can be worth thinking about whether there are ways you can get a bit more, just in case you get an unexpected bill. If it is not enough, then you will have to come up with a plan on how to get more.

Consider Ways to Get More Money

Fortunately, there could be quite a few ways that you can get extra money. For example, it could be possible to compare the price of everything that you are buying, including utility bills, insurance and things you get in shops and see whether you will be able to find them cheaper. If you can pay less for the items that you normally buy, then you will have extra money available which you can use to pay the loan. You may also benefit a lot, by cutting down the number of things that you are buying. For example, you might want to see if you spend a lot of money on luxury items and whether it might be a good idea to reduce that for a while until the loan is repaid. It can be hard to go without things, but it can be worth it if it reduces the stress and cost associated with not repaying your loan on time.

It may also be a good idea to think about whether there are ways that you can earn more money. You might be able to sell some things that you own and no longer need and get a bit of money that way. It could be possible to do some more hours in your job to get some extra or to even see if you could change jobs to get more money. You may be able to do some freelance or temp work to earn a bit extra as well. You may also be able to find some online work, find ways to monetise your hobby or even start up a business. There are lots of options, you just need to find one that you know you can do and will bring in money when you need it.

Are Cashback Credit Cards Worthwhile?

There are some credit cards which offer cashback to those that use them. These might seem like a really good opportunity to get some extra money, but you need to make sure that you are fully aware of all the facts about them and the risks of having a card like this so that you can decide whether it is a good idea for you to take out a card like this or not.

Advantages of cashback cards

A cashback card will give you money back when you spend money on the card. The more you use the credit card, the more cashback you will get. This means that if you use a credit card a lot, you will really benefit from being able to get some money back from it due to getting this cashback. So, you will get rewarded for spending money. There are some cards which will reward your in vouchers or air miles or other items as well and these are similar as well as you will get rewarded for spending money and get something back as a result.

Disadvantages of cashback cards

The card sounds almost irresistible, but it is wise to be extremely careful with one of these. It is important to start by realising that the cashback will only be a very small amount. It tends to be less than 1% of what you spend so you will not get very much money form it. The cashback that you get is credited back onto the card so that you have it paid off your next bill so it is not really available for you to spend. You will also usually find that the interest you get charged on the card if you do not repay it right away often tends to be higher than that charged on regular credit cards. This means that you need to be very careful. If you are likely not to repay the balance in full each month then you could find that you will have to pay more in interest than you would on a regular card and this could make it not worth having the cashback card at all. This is because the small amount of cashback you get may not make up for the high amount of interest you are paying. It can be quite complex to work out as well so might seem confusing.

You might also be tempted to use the card more because of the cashback. If you just use if for purchases you would have made anyway and you make sure that you can afford to repay it in full, then this is okay. However, if you are the sort of person that likes an excuse to spend some money and treat yourself to a few things, then you could find that you will use the card as an excuse for spending on yourself. Then you could find that you will end up owing more money than you can afford to repay. You therefore need to make sure that you only take out this card if you feel that you can trust yourself with it and you will not use it as a way to justify too much spending. You also need to make sure that you only use this card if you are sure that it will not be too expensive for you. Make sure that if you are not intending to repay the full balance that the interest rate is competitive and that it is still worth using or consider whether it would actually be cheaper for you to use a more conventional card.

What is an Interest Only Mortgage?

You may have heard of an interest only mortgage but not be too sure what it is. If you are thinking of getting a mortgage or remortgaging then it is really important to have a good understanding of this. This is because you will be able to then make sure that you make the right choice with regards to the mortgage that you choose.

The Basics

It is quite simple really in that an interest only mortgage means that you will only have to repay the interest. Of course, you will eventually have to repay what you owe in full, but each month, you will only have to pay interest to the lender. Then when the mortgage period is up – perhaps after twenty five years, you will then repay all of the money that you borrowed in one lump sum. This might sound a bit odd, but the idea is that you invest some money each month and hope that it will increase en value so that by the end of the mortgage term, you have enough to pay for the house. This will mean that you will owe the full amount that you borrowed right until the end of the mortgage term and so you will be charged interest on that full amount all the time. If you have a repayment mortgage, which is the other alternative, you will repay some of what you owe each month as well as paying the interest and this will mean that the interest amount you have to pay will go down as you pay off more and more of what you owe. This could mean that you will end paying a lower amount of interest over the twenty five years if you get a repayment mortgage. However, the interest rates for these two types of mortgages may not be the same. Also, when you are investing money, you will be getting a return on that. It may not be a monthly return but the investment should grow in value which means you could end up paying out more money compared with the repayment mortgage. It can be very complex to calculate and you will have to make some estimations and forecasts with regards to how the investment value will change as well as interest rates. It can be wise to have a financial advisor to help you.

Who do They Suit?

These can be good for those people that would rather invest money and try to make more money than they need compared to those that would rather be sure that they have definitely repaid everything. If you are willing to take a risk then you could find that you will be able to cope with this type of mortgage, but if you are likely to get anxious and worry that you will not have enough money to repay it, then it could be a lot better to go for the repayment. You will need to keep checking your investment to make sure that it will be enough to repay the mortgage when necessary.

 However, you need to be very careful to make sure that if you do go for an interest only mortgage that you are confident that you will invest enough to repay it. It can be tempting to not do so, if you get short of money and assume that you can make it up later and you could end up not having enough. With the repayment you will have little choice but to make the payments. Therefore, if you are not self-disciplined then it could be better to go for a repayment.